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No conditions connected with repayment. Have a look at thenote. Are there any conditions mentioned? Mr Carter: Yeah, well, here's one. It says that as soon as John is paid out his inheritance, he'll start paying on the note. I guess that's a condition, isn't it? Ms Benton: Yes, it certainly is. Hmm. Er, this may cause you problems, but let's just look at the final requirement. The Note should state that the outstanding sum is either Payable on demand or at a definite time. Is that written anywhere on the note? Mr Carter: No, nothing like that's written anywhere on it. Ms Benton: Oh dear. Well, Mr Carter, it looks like out of six Requirements for negotiability, your note only meets four. Mr Carter: I guess we now need to talk about whether I can Get my money out of this whole mess ... Listening 2 Part I Ms Turner: So, how are things coming along with the Bifler real-estate deal? Ms Wadman: Good, quite good, except for one thing. That's Why I came over here to talk to you today. We have a bit of A problem at the moment. Ms Turner: Oh? What is it? Ms Wadman: Well, the agent of the buyers group insists on Signing the promissory note for the down payment on behalf Of the entire group. Ms Turner: Why's that? Ms Wadman: Well, according to him, the other three principals in the deal aren't available for signing right now. And, as you know, our client's in a hurry to sell the property, so he'd Also like to get the note and close the deal as soon as Possible. The buyers seem to be in a hurry, too - they really want this property. They're planning to build a big shopping Mall on it. Part II Ms Wadman: They're planning to build a big shopping mall on it. Ms Turner: Well, what do you mean by 'not available'? Ms Wadman: One of the principals is in the hospital, another One is out on his boat somewhere in the Caribbean and the third's in jail. Ms Turner: In jail? Ms Wadman: On a tax-evasion charge, I'm told. He'll be out in A few months. Ms Turner: Right. Doesn't sound like a very trustworthy business partner, does he? Well, even so, it's important That our client realises that he puts himself in an Unfavourable position if only one person signs the Promissory note for all the principals. Even if all the parties involved are in a hurry to complete the deal, it's important Under the circumstances that all the principals sign the Note. Ms Wadman: Why's that? Ms Turner: Are you familiar with Ness versus Greater Arizona Realty, Inc. and revisions to the UCC affecting that decision? Ms Wadman: No, I'm not. Could you explain? Ms Turner: Well, er, basically, Ness versus Greater Arizona Involved a situation which was very similar to this case. A Promissory note was signed by only one principal who was Acting as an agent on behalf of a group of principals who Wanted to buy real estate. They were unable to pay the note And were sued by the drawee. However, the court ruled that no one's liable on an instrument unless he's signed it. Ms Wadman: I see. Ms Turner: However, after the revisions to the UCC, a principal Date: 2015-12-11; view: 849
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